1993/12/01 by Danny Quah · 1 citation
Economics, Econometrics and Finance · Environmental Science · #Economic Growth and Productivity #Economic theories and models #Sustainable Development and Environmental Policy
paper · doi:10.2307/3440905
openalex publication_date 1993/12/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Recent tests for the convergence hypothesis derive from regressing average growth rates on initial levels: a negative initiid level coefficient is interpreted as convergence.These tests turn out to be plagued by Francis Gahon's classical fallacy of regression towards the mean.Using a dynamic version of Gallon's fallacy, we establish that, in fact, coefficients of arbi- trary signs in such regressions are consistent with an unchanging cross-section distribution of incomes.Feathers bit the ground before their weight can leave the air.